Core Insights - HG Vora Capital Management has significantly reduced its stake in United Parks & Resorts Inc., selling nearly 1.2 million shares for approximately $53.5 million, which indicates a strategic pivot on one of its major investments [1][2][6] Company Performance - United Parks & Resorts Inc. reported a third-quarter revenue decline of 6.2% to $511.9 million, with attendance dropping 3.4% to 6.8 million guests, reflecting a decrease of about 240,000 guests year over year [7][8] - Net income for the company fell 25% to $89.3 million, and free cash flow also weakened, attributed to factors such as an unfavorable holiday calendar, weather disruptions, and a reversal in international visitation [8][9] Financial Metrics - As of the latest market close, United Parks & Resorts Inc. shares were priced at $31.97, down 44% over the past year, significantly underperforming compared to the S&P 500, which has gained nearly 15% [3][4][8] - The company's market capitalization stands at $1.7 billion, with a trailing twelve-month (TTM) revenue of $1.7 billion and a TTM net income of $181.2 million [4][5] Investment Implications - The reduction of United Parks & Resorts' position from 11% to 3% of HG Vora's assets under management (AUM) suggests a waning conviction in the stock's potential for recovery [3][6] - The company's business model is under scrutiny, as it may not be fundamentally broken, but the margin of safety has narrowed, necessitating improvements in execution, stabilization of demand, and demonstration of cost efficiencies to regain investor confidence [9]

Core Insights - United Parks & Resorts missed Wall Street's revenue expectations in Q3 CY2025, with a year-on-year sales decline of 6.2% to $511.9 million and a GAAP profit of $1.61 per share, which was 28.8% below analysts' consensus estimates [1][5] Financial Performance - Revenue: $511.9 million vs analyst estimates of $539.8 million (6.2% year-on-year decline, 5.2% miss) [5] - EPS (GAAP): $1.61 vs analyst expectations of $2.26 (28.8% miss) [5] - Adjusted EBITDA: $216.3 million vs analyst estimates of $252.1 million (42.3% margin, 14.2% miss) [5] - Operating Margin: 29.6%, down from 36.8% in the same quarter last year [5] - Visitors: 6.79 million, down 240,000 year on year [5] - Market Capitalization: $1.93 billion [5] Management Commentary - Management cited several factors for the underperformance, including unfavorable calendar shifts, poor weather during key holidays, a drop in international visitation, and shortfalls in cost execution [3] - CEO Marc Swanson expressed dissatisfaction with the quarterly results and noted that attendance would have been roughly flat after adjusting for event timing and international declines [3] - A rare reversal in international trends was attributed to broader macroeconomic issues and travel-related headwinds [3] Future Outlook - Management is focusing on operational improvements, new guest offerings, and targeted investments to restore growth [4] - Upcoming major attractions scheduled for 2026 include SEAQuest: Legends of the Deep in Orlando and an expanded Lion & Hyena Ridge at Busch Gardens Tampa Bay [4] - The company expects strong forward booking revenue at Discovery Cove and group business, aiming for higher attendance and improved margins through enhanced marketing and passholder programs [4] - Swanson expressed confidence in the company's ability to deliver operational and financial improvements leading to increases in EBITDA, free cash flow, and shareholder value [4]

Revenue Performance - Total revenues for the three months ended September 30, 2025, decreased by $34.1 million, or 6.2%, to $511.9 million compared to $545.9 million in the same period of 2024[126]. - Total revenues for the nine months ended September 30, 2025 decreased by $51.9 million, or 3.9%, to $1,289.0 million compared to $1,340.9 million for the same period in 2024[135]. - Admissions revenue for the nine months ended September 30, 2025 decreased by $46.3 million, or 6.4%, to $680.5 million compared to $726.8 million for the same period in 2024[136]. Attendance and Admissions - Admissions revenue decreased by $28.3 million, or 9.5%, to $268.7 million, primarily due to a decrease in admission per capita and attendance, which fell by approximately 240,000 guests, or 3.4%[127]. - Attendance levels are influenced by factors such as affordability, new attractions, competitive offerings, and global economic conditions[118]. - Total attendance for the first nine months of 2025 decreased by approximately 252 thousand guests, or 1.5%, compared to the first nine months of 2024[136]. Operating Expenses - Operating expenses increased by $7.1 million, or 3.4%, to $214.4 million, primarily due to higher labor-related costs and increased non-cash self-insurance adjustments[130]. - Selling, general and administrative expenses rose by $5.3 million, or 9.6%, to $60.7 million, driven by increased third-party consulting costs and legal fees[131]. - Inflation has significantly impacted the company's operations, affecting costs related to food, merchandise, labor, and utilities[171]. Net Income and Profitability - Net income for the three months ended September 30, 2025, was $89.3 million, a decrease of $30.4 million, or 25.4%, compared to $119.7 million in the prior year[126]. - Net income for the nine months ended September 30, 2025 decreased by $46.3 million, or 23.2%, to $153.3 million compared to $199.6 million for the same period in 2024[135]. - Operating income for the nine months ended September 30, 2025 decreased by $78.5 million, or 20.3%, to $309.0 million compared to $387.5 million for the same period in 2024[135]. Cash Flow and Financing - Net cash provided by operating activities was $301.7 million during the nine months ended September 30, 2025, down from $367.7 million during the same period in 2024[150]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $16.3 million for share repurchases and $11.6 million for long-term debt repayments, compared to $445.3 million and $238.2 million respectively in 2024[155][158]. - As of September 30, 2025, the company had $1.527 billion in Term B-3 Loans maturing on December 4, 2031, and a $700 million Revolving Credit Facility with approximately $689.1 million available for borrowing[158]. Cost Management and Strategic Initiatives - The company has identified meaningful cost savings opportunities, including technology initiatives, to improve operating margins[120]. - The company incurred $4.4 million in business optimization costs for the three months ended September 30, 2025, reflecting ongoing strategic initiatives[166]. Debt and Compliance - Approximately $1.5 billion of the company's long-term debt is variable-rate debt, with a hypothetical 100 bps increase in Term SOFR potentially increasing annual interest expense by approximately $22.3 million[173][174]. - The company was in compliance with all covenants in the credit agreement governing the Senior Secured Credit Facilities and the indentures governing its Senior Notes as of September 30, 2025[160]. Depreciation and Amortization - Depreciation and amortization expense for the nine months ended September 30, 2025 increased by $8.3 million, or 6.9%, to $129.4 million compared to $121.0 million for the same period in 2024[141]. In-Park Spending - Food, merchandise, and other revenue decreased by $5.7 million, or 2.3%, to $243.2 million, despite a 1.1% increase in in-park per capita spending, which rose to $35.82[128]. - In-park per capita spending increased by 0.6% to $37.07 for the nine months ended September 30, 2025 compared to $36.85 for the same period in 2024[137]. EBITDA Metrics - Adjusted EBITDA for the nine months ended September 30, 2025, was $489.98 million, compared to $555.72 million in 2024, reflecting a decrease of approximately 11.7%[166]. - Covenant Adjusted EBITDA for the last twelve months ended September 30, 2025, was $654.73 million, which includes estimated cost savings adjustments[166]. Seasonal Trends - The theme park industry is seasonal, with approximately two-thirds of attendance and revenues generated in the second and third quarters[123]. Contractual Obligations - There were no material changes to the company's contractual obligations as of September 30, 2025, compared to previous disclosures[167].

Core Viewpoint - United Parks & Resorts experienced a significant decline in stock price, dropping 22.5% after missing earnings and sales forecasts for Q3 [1][7]. Financial Performance - United Parks reported earnings of $1.61 per share, missing the forecast of $2.37, and sales of $511.9 million, below the expected $538.2 million [1][3]. - Sales declined by 6% year-over-year, attributed to a 3% drop in attendance at its theme parks, while earnings fell by 25% year-over-year [3][4]. Management Commentary - CEO Marc Swanson expressed dissatisfaction with the quarterly results, citing factors such as an unfavorable calendar shift, poor weather during peak holiday periods, a decline in international visitation, and less than optimal execution as reasons for the poor performance [4]. - Swanson indicated that attendance would have been flat in Q3 if not for these adverse factors [4]. Future Outlook - The company plans to buy back $500 million worth of stock to enhance shareholder value and concentrate profits among fewer shares when business improves [5]. - Analysts predict a potential turnaround with approximately 10% earnings growth anticipated as early as next year [6][8]. Market Valuation - United Parks has a market capitalization of $2 billion and trailing earnings of $181 million, resulting in a price-to-earnings ratio of 11, which is considered undemanding [6].

Financial Performance - United Parks & Resorts reported a revenue decline of 6.2% year over year, totaling $511.9 million, which fell short of the consensus estimate of $539.8 million [2] - Earnings per share were $1.61, which is 28.8% below the anticipated $2.26, indicating significant profitability issues [2] - The company experienced a drop in attendance, with 240,000 fewer visitors compared to the same period last year, contributing to the revenue shortfall [2] - Operating margin contracted to 29.6% from 36.8% in the prior year's quarter, reflecting worsening profitability [2] - Adjusted EBITDA also came in well below expectations, further highlighting financial challenges [2] Market Reaction - Shares of United Parks & Resorts fell 22.9% in the morning session following the earnings report, indicating a significant market reaction to the disappointing results [1] - The stock has shown volatility, with 10 moves greater than 5% over the last year, suggesting that this news has notably impacted market perception [4] - The stock is down 37.6% since the beginning of the year and is trading 40.4% below its 52-week high of $60.29 from December 2024 [6] Industry Context - The theme park sector, including United Parks & Resorts, is sensitive to international trade relations, particularly with China, which affects both manufacturing and consumer markets [5] - A favorable trade agreement could potentially lower tariffs and boost sales, impacting revenues and profitability positively for companies in this sector [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $511.9 million, a decrease of $34.1 million or 6.2% compared to Q3 2024 [18] - Attendance decreased by approximately 240,000 guests or 3.4% year-over-year [18] - Net income for Q3 2025 was $89.3 million, down from $119.7 million in Q3 2024 [19] - Adjusted EBITDA for Q3 2025 was $216.3 million [19] - Year-to-date total revenue was $1.29 billion, a decrease of $51.9 million or 3.9% compared to the same period in 2024 [19] Business Line Data and Key Metrics Changes - In-park per capita spending increased by 1.1%, while total revenue per capita decreased by 2.9% [18] - Admission per capita decreased by 6.3% [18] - Attendance at SeaWorld Orlando was up year-to-date despite overall attendance declines [8][39] Market Data and Key Metrics Changes - International visitation declined by approximately 90,000 guests during the quarter, reversing earlier trends seen in the first half of the year [7][34] - The consumer environment in the U.S. is described as inconsistent, impacting attendance and spending patterns [6][29] Company Strategy and Development Direction - The company plans to continue investing in new attractions and operational efficiencies to drive attendance and per capita spending [10][17] - Upcoming attractions include SeaQuest: Legends of the Deep at SeaWorld Orlando and Barracuda Strike at SeaWorld San Antonio [11][12] - The company is optimistic about future revenue trends for Discovery Cove and group business, both projected to be up over 20% compared to the previous year [8][68] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 results but remains confident in the ability to improve operational and financial performance [10][22] - The company acknowledges macroeconomic factors affecting international visitation and consumer behavior [34][60] - Management is focused on enhancing guest experience and driving revenue through strategic initiatives and partnerships [14][50] Other Important Information - The company has a strong balance sheet with a net total leverage ratio of 3.2 times and approximately $872 million in total available liquidity [20] - The board approved a $500 million share repurchase program, with $32.2 million already repurchased [9] Q&A Session Summary Question: What happened to attendance from early August to the end of the quarter? - Management noted that weather recovery was less than expected, and international attendance impacts were more pronounced in September [25][26] Question: What does the inconsistent consumer environment mean? - Management indicated that while in-park spending is up, there are macroeconomic factors affecting consumer behavior that are difficult to pinpoint [29][30] Question: What drove the reversal in international visitation? - Management attributed the decline to macro factors, including visa and immigration issues, rather than specific park-related issues [34][35] Question: How is attendance pacing in October? - Attendance was up in October, but not as much as desired due to weather impacts and continued international declines [42] Question: Is there a need for a strategic pivot in marketing? - Management believes that while there are areas for improvement, the core offerings remain strong, and they will continue to invest in park enhancements [48][49] Question: What is the outlook for CapEx spending next year? - Management expects CapEx spending to remain in a similar range as the current year, focusing on park investments [67] Question: Are there bifurcated trends in consumer behavior? - Management confirmed that while some consumers are impacted, others, particularly at high-end offerings like Discovery Cove, are performing well [69][70]

United Parks & Resorts (NYSE:PRKS) Q3 2025 Earnings Call November 06, 2025 09:00 AM ET Company ParticipantsThomas Yeh - Equity ResearchJim Forrester - CFO and TreasurerSteve Wieczynski - Managing DirectorArpine Kocharian - Managing DirectorMarc Swanson - CEOPatrick Scholes - Managing Director and Lodging and Leisure Equity ResearchMatthew Stroud - Head of Investor RelationsConference Call ParticipantsNone - AnalystSean Wagner - Equity Research AnalystChris Woronka - Senior Equity AnalystOperatorToday, and w ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $511.9 million, a decrease of $34.1 million or 6.2% compared to Q3 2024 [17] - Attendance decreased by approximately 240,000 guests or 3.4% year-over-year [17] - Net income for Q3 2025 was $89.3 million, down from $119.7 million in Q3 2024 [18] - Adjusted EBITDA for Q3 2025 was $216.3 million [18] - Year-to-date total revenue was $1.29 billion, a decrease of $51.9 million or 3.9% compared to the same period in 2024 [18] Business Line Data and Key Metrics Changes - In-park per capita spending increased by 1.1% in Q3 2025, continuing a trend of growth in 20 of the last 22 quarters [6] - Total revenue per capita decreased by 2.9%, with admission per capita down 6.3% [17] Market Data and Key Metrics Changes - International visitation declined by approximately 90,000 guests during the quarter, reversing earlier trends seen in the first half of the year [5] - The consumer environment in the U.S. is described as inconsistent, impacting attendance and spending [5][28] Company Strategy and Development Direction - The company is focused on improving operational efficiencies, driving attendance, and increasing per capita spending [9] - Upcoming attractions and events for 2025 include new rides and immersive experiences at various parks [10][11] - The company is actively pursuing international partnerships and sponsorship opportunities, with expectations of signing additional MOUs [13][49] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 results but remains confident in the ability to improve operational and financial performance [9] - The company anticipates strong revenue trends for Discovery Cove and group business, both projected to be up over 20% compared to the previous year [6][67] - Management acknowledged challenges in managing costs and is implementing new processes to address these issues [12][63] Other Important Information - The company has a strong balance sheet with a net total leverage ratio of 3.2 times and approximately $872 million in total available liquidity [19] - The company has repurchased 635,020 shares for an aggregate total of $32.2 million through November 4, 2024 [8] Q&A Session Summary Question: What happened to attendance from early August to the end of the quarter? - Management noted that attendance was impacted by weather recovery not meeting expectations and a negative calendar shift [24][25] Question: What does the inconsistent consumer environment mean? - Management indicated that while in-park spending is up, there are macro factors affecting consumer behavior that are difficult to pinpoint [28][29] Question: What drove the reversal in international visitation? - Management attributed the decline to macro factors affecting international travel, including visa and immigration issues [33][34] Question: How is attendance pacing for October? - Attendance was up in October, but not as much as desired due to weather impacts and continued international decline [41] Question: Are there differences in domestic visitor trends? - Management stated that most attendance comes from local visitors, and international attendance has been the most pronounced change [51] Question: What are the expectations for CapEx spending next year? - Management expects CapEx to remain in a similar range as the current year, focusing on investments in parks [66] Question: Is there a bifurcation in consumer trends? - Management confirmed strong performance at Discovery Cove while acknowledging some consumers are being impacted by economic factors [67][69]

Core Insights - United Parks & Resorts reported quarterly earnings of $1.61 per share, missing the Zacks Consensus Estimate of $2.24 per share, and down from $2.08 per share a year ago, representing an earnings surprise of -28.13% [1] - The company posted revenues of $511.85 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.11% and down from $545.9 million year-over-year [2] - The stock has underperformed the market, losing about 17.7% since the beginning of the year compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $387.2 million, and for the current fiscal year, it is $4.04 on revenues of $1.7 billion [7] - The estimate revisions trend for United Parks & Resorts was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Services industry, to which United Parks & Resorts belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Exhibit 99.1 United Parks & Resorts Inc. Reports Third Quarter and First Nine Months 2025 Results ORLANDO, FL, November 6, 2025 - United Parks & Resorts Inc. (NYSE: PRKS), a leading theme park and entertainment company, today reported its financial results for the third quarter and first nine months of fiscal year 2025. Third Quarter 2025 Highlights First Nine Months 2025 Highlights Other Highlights "We are obviously not happy with the results we delivered in the quarter. Performance during the quarter was ...